Margaret McDonagh, became Baroness McDonagh, after helping Labour secure an election victory (Image: PA)
gave a £1.2 million loan to a Labour MP so she could buy a house for her terminally ill sister.
Siobhain McDonagh, the Labour MP for Mitcham and Morden, described her sister Baroness McDonagh as a “best friend” of Lord Alli for 25 years.
Lady Margaret McDonagh was Labour’s first female general secretary and has been credited with helping Sir Tony Blair win his resounding victory for New Labour in 1997.
She was tragically diagnosed with a brain tumour in November 2021 and died last year with a memorial service attended by two former and one future Labour Prime Minister, with Gordon Brown, Sir Tony and Sir all in attendance.
Lady McDonagh and Siobhain had purchased a house together in the 1990s where they lived for almost 25 years until 2021.
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Siobhain McDonagh during a Commons Treasure Committee meeting (Image: PA )
The newspaper says when Lady McDonagh become ill her sister tried to modify the home to help her, but that Lord Alli stepped in to lend money to buy a house nearby so that the Baroness could used a downstairs bathroom and bedroom.
Ms McDonagh has said she was “really aware of just how fortunate I am to have a friend like Waheed”, adding that there was “nothing but love and kindness here”.
The Telegraph reports Ms McDonagh has the intention to repay Lord Alli from the sale of the home she bought with her sister in the 1990s, and that she lives in the second property.
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Siobhain McDonagh’s sister Baroness McDonagh was helped to buy a house (Image: PA )
The loan, which was said to “interest-free” was declared in the MPs’ register of interests at a value of £1.2million and was received in March 2023. It’s understood the need for probate to be completed means the loan has not yet been repaid.
It’s reported after Ms McDonagh addressed the money when she was challenged on the social media site X over the loan, it was suggested the amount of money give by Lord Alli to the MP put her “in his debt”.
Ms McDonagh responded on X, saying: “The loan will be repaid on gaining probate on Margaret’s estate. It has been properly registered and Waheed wanted nothing other than his best friend being comfortable in the last months of her life.”
The Labour MP added when challenged over if she had given anything in return, adding: “What can you give someone who has £200 million and who has been a Labour Member of Parliament for 25 years?
“I can’t tell the amount of work it used to take for Margaret to choose him a birthday present.”